A Year of Giving Generously
Whether it’s a matter of getting caught up in the holiday spirit or simply improving one’s tax situation, people tend to be more generous at the end of the year. It’s also a time that Valley charities count on to help ease budgets that were hit hard in recent years during the recession. While some of the larger Valley-based charities are doing better than in 1990, it hasn’t come easily. The Motion Picture & Television Fund Foundation, which has increased its fund-raising staff from two people to 10, collected an additional $4 million in donations.
Here’s a look at generosity both in the Valley and nationwide in 1990, at the onset of the recession, and in 1995, as the financial picture began to improve for many.
Statistics on Giving
Total contributions nationally (in billions of dollars)
1990: $111.47; 1995: $143.85 (+29%)
Corporations: 1990: $5.46; 1995: $7.4 (+35.5%)
Foundations: 1990: $7.23; 1995: 10.44 (+44%)
Bequests: 1990: $7.64; 1995: $9.77 (+28%)
Individuals: 1990: $91.15; 1995: $116.23 (+27.5%)
Where the Money Goes
(Contributions in billions of dollars)
Religion (+27%)
1990: Total contributions: $49.79
1995: Total contributions: $63.45
*
Education (+44.5%)
1990: Total contributions: $12.41
1995: Total contributions: $17.94
*
Health (+27%)
1990: Total contributions: $9.90
1995: Total contributions: $12.59
*
Human Services (-1%) (includes disaster relief, homeless aid, youth programs)
1990: Total contributions: $11.82
1995: Total contributions: $11.70
*
Arts, Culture and Humanities (+26%)
1990: Total contributions: $7.89
1995: Total contributions: $9.96
*
Public/Society Benefit (+44%) (includes civil liberties, community improvement, science)
1990: Total contributions: $4.92
1995: Total contributions: $7.10
*
Environment/Wildlife (+50%)
1990: Total contributions: $2.64
1995: Total contributions: $3.98
*
International Affairs (+37%)
1990: Total contributions: $1.5
1995: Total contributions: $2.06
Average Amount Given by Gender, Race, (Gains/losses from 1989 to 1995 nationwide)
Males: -18%
Females: 44%
White: 7%
Nonwhite: -9%
Black: 2%
Hispanic (may include other races): 14%
*
Married: 10%
Divorced, separated or widowed: 16%
Single: -27%
Benefits of Giving
* There are monetary benefits associated with making a donation, but only for those who itemize on their tax returns. The amount of charitable contributions is deducted from adjusted gross income, thus reducing taxable income.
* The higher a person’s tax bracket, the greater the benefit from giving. In general, a wealthy person pays 55 cents for every dollar donated to charity, and a middle-income person who itemizes pays 70 cents, according to Cal State Northridge professor Robert L. Barker, chairman of the accounting and management information systems department.
* Those who donate items (such as stocks and property) that have appreciated in value since their original purchase get a double break by avoiding the capital gains tax they would have had to pay had they cashed in a profitable stock or piece of land.
* Special tax rules apply to contributions to private foundations that can make it much less attractive than giving to a public charity. In 1986, Congress voted to lower the tax rate, resulting in a decreased write-off for charitable contributions for those who itemize.
Tips for Contributors
* Know the exact name of the organization. There are sound-alike groups devoted to confusing the public.
* Ask how much of your dollar will be used for true charitable purposes. The National Charities Information Bureau calls for a bare minimum of 60 cents.
* Don’t give your credit card number to strangers on the phone.
* Be skeptical of callers who say you’ve won a valuable prize from a “charity.”
* Don’t respond to letters saying you have pledged money unless you are certain that you did.
* Be leery of callers who say that a messenger will come to your home to collect your monetary donation. Insist on using the U.S. Postal Service.
* Don’t give cash. Make out a check to the charity.
Sources: Individual charities; American Assn. of Fund-Raising Counsel Trust for Philanthropy; Independent Sector; National Charities Information Bureau; CSUN professor Robert L. Barker/Researched by STEPHANIE STASSEL and DOUG SMITH/Los Angeles Times